Elegant Homes Worldwide - The Montpelier Sipp
The Montpelier SIPP
In the last decade, the SIPP market has grown substantially in the UK as people have realized the appeal of Britain's most flexible pension scheme. However not every SIPP is alike and not every SIPP provider is able to offer the same service as the others.
Providers vary, from large insurance companies operating via call centers to small niche market players who offer a face-to face service in order to more fully understand a client's requirements. It is therefore important that clients consider the whole SIPP proposition and just what it is they require.
Some SIPP benefits include;
Commercial Property Purchase
Often people find a commercial property they either wish to occupy or else wish to let an existing tenant as a sound investment. In many cases an accountants will recommend the client use his or her pension fund to purchase the property. Property in a SIPP can be mortgaged
Types of Investment
Montpelier Pension Trustees Limited is one of the first companies in the UK to establish a SIPP after the new, wide ranging pension rules came into effect on April 6, 2006(known as A-day).
A SIPP is governed by a trust deed, which is established by the provider and registered with HMRC (Her Majesty's Revenue and Customs).
The Montpelier SIPP has been designed to allow clients a wide range of investments that may be recommended by their independent financial adviser or stockbroker.
Most SIPP providers will allow investments in shares, building society cash deposits, gilts and commercial property funds, as well as an investment portfolio agreed with a stockbroker.
However more sophiscated investors may wish to invest in hedge funds, overseas property funds or land banking.
The Montpelier SIPP allows all these investment choices and a broader opportunity of obtaining investment growth.
Choice of benefits
As a result of pension legislation changes the structure of how and when pension benefits can be taken have altered, offering greater choice, but not all SIPP Providers allow you access to every option.
Family SIPP
It is anticipated that a large growth area will be families who will be able to take advantage of the new rules by setting up a Family SIPP. It is the new style post A-day SIPPs which will appeal to this market, both in product design and charging structure.
The Montpelier SIPP has also been designed to cater for those employers wishing to contribute to a company pension scheme for the benefit of their employees.
It can for example offer each employee the ability to make his or her own individual investment decisions, usually with the help of a professional adviser.
Protected Rights Contributions
Since 1988, employees are allowed to contract out of the State Earnings Related Pension Scheme (SERPS), and many people have built up funds with an insurance company but have little idea of what investment funds have been used, or how well those funds are performing.
It is now possible to transfer these funds to a Montpelier SIPP, and in so doing simplify the paperwork and allow the investment advisor to recommend a suitable investment strategy.
Service
Service styles vary from one SIPP provider to another.
Do you require face-to-face meetings with someone who will personally advise you, or do you wish to make your own investment decisions?
Do you wish to trade on-line or do you wish to leave the investment decisions to a professional advisor?
There are different SIPP styles to suit everyone, from the commercial property investor to those retired clients seeking to maximise their income.
Clients seeking overall advice for their families, or indeed their employees, may also need suitable SIPP advice.
The vision of The Montpelier SIPP has been to create a brand new SIPP to cater for all these options.